NOVA Merchant Bank to Transition to Commercial Banking

NOVA Merchant Bank has received approval from its shareholders to transition to commercial banking. The shareholders gave their unanimous approval during the company’s 6th annual general meeting (AGM) held in Lagos .

According to them, the bank remains well-positioned to sustain and build upon its growth legacy.
At the  AGM, the company’s Board of Directors unveiled  a comprehensive restructuring plans on how the bank would  transition from a merchant bank to a commercial banking license.

 The Chairman, NOVA Merchant Bank, Mr. Phillips Oduoza, who addressed shareholders, explained that the decision to transition would help the bank to further streamline its operations, bolster its financial stability, and foster sustainable growth across its businesses.

He said: “I am excited about the prospects of NOVA as we embark on this new growth phase. This strategic move is in line with our vision of expanding operations and diversifying services while providing exceptional services to our valued customers.

 “The management of the bank has firmly established a remarkable legacy of growth since its inception and has consistently demonstrated its ability to achieve substantial progress across various parameters and the commercial banking license will strengthen the bank’s revenue base, entrench value creation, impact earnings growth and sustain higher returns for the shareholders, while affording more banking customers across the nation the opportunity to enjoy the products and services of NOVA Bank.”

Also speaking, Managing Director of  NOVA Merchant Bank, Mr. Nath Ude, said, with the new licence, the bank was poised to extend its comprehensive range of financial services throughout Nigeria and cement its position as a leading player in the Nigerian banking industry.

“The resounding approval from the shareholders for the transition to a commercial bank reflects their confidence in NOVA’s ability to thrive in the evolving financial landscape. The bank remains resolute in its pursuit of sustainable growth, while continuing to provide its customers with innovative financial solutions. As we transition into a commercial bank, NOVA aims to expand its services and further enhance its position as a trusted provider of cutting-edge financial solutions in Nigeria,” he  stated.

Ude restated the bank’s commitment to continue to invest in new technologies, including our robust digital platform, to create exceptional service experience for its customers.
Shareholders also ratified the bank’s result for the full year ended December 31, 2022, where it  recorded outstanding performance and significant growth across all its indicators on the back of innovative offerings and exceptional customer service.

For instance, total assets grew by 14.6 per cent  to close 2022 at N279.9 billion up from N244.2 billion  recorded the previous year, while profit before tax rose significantly by 107.9 per cent to close the year 2022 at  N3.50 billion. Profit after tax also recorded a similar feat, as it  jumped from N1.58 billion in 2021 to N3.21 billion  in the year under  consideration, representing an impressive growth of 102.9 per cent.